Nvidia has a market capitalization between $5 trillion and $5.4 trillion, while AMD hovers around $800 billion to $900 billion, creating an unprecedented valuation gap between the two AI chip manufacturers. Nvidia controls 75 to 87% of the AI accelerator market by revenue, compared to only 5 to 10% for AMD, and generates gross margins of approximately 74% versus 50% for its competitor. AMD’s stock has surged over 100% year-to-date, while Nvidia has gained only 13 to 23%, with investors pricing AMD at forward P/E multiples often exceeding 60x compared to Nvidia’s 20 to 32x. AMD raised its total addressable market estimate for AI accelerators to $1.4 trillion by 2030.
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